AirAsia posts increased 1Q profit

AirAsia has announced a profit after tax of RM 224,110 million for the first quarter of 2010 (1Q10).

AirAsia Group CEO Tony Fernandes revealed that the company’s revenue for the quarter ending 31 March 2010 was up by 10% year-on-year from 1Q09 – from RM 797,131 million to RM 878,041 million. Passenger growth was 17.1% up at 3.7 million passengers.

The other major highlights of the quarter were the sustained turnaround in the Group’s Thailand and Indonesian operations, and the 31% jump in ancillary income, which contributed 16% to the company’s total 1Q10 revenue.

“The results in Thailand and Indonesia and the contribution from Ancillary are an endorsement of the strategic shifts we put in place in 2009. Thai AirAsia is now the largest domestic carrier in Thailand, while Indonesia’s improved performance is based on a realignment of its routes towards higher-yielding international flights,” Fernandes said.

On the operations in Thailand, Fernandes said AirAsia Thailand had generated revenue of THB 3,108 million, recording 30% growth year-on-year and profit after tax was up by 35% year-on-year. Thailand AirAsia also registered a 25% growth in passenger volume. “It’s an amazing performance, and validates our strong belief that AirAsia Thailand is more than capable of weathering whatever challenges come its way and still post impressive numbers. These efforts will also get a powerful boost with the transition to an all-Airbus fleet in Thailand by the third quarter of this year.”

On AirAsia Indonesia, Fernandes commented, “I am proud to announce that Indonesia has recorded a profit for the first time.” Revenue at the Indonesian operation grew by 37% year-on-year. The positive growth of 107% profit after tax is attributed to higher passenger volume and ancillary income.